Using a single photon avalanche diode (SPAD) as a receiver in an optical wireless communications (OWC) system can effectively expand the transmission distance. However, the performance of the SPAD receiver is usually affected with the bit error rate (BER) lower bound determined by background light and the inter-symbol interference (ISI) distortion caused by dead time. In this paper, external time-gated technology is employed, and the SPAD is only activated within the set gate-ON time to alleviate the influence of background light and ISI distortion. The SPAD photon counting model and the communication BER model are established according to the external time-gated characteristics. Considering the functional relationship among the gate-ON time, signal light flux, background light flux and blocking time, we take the minimum BER as the optimization target, the optimal gate-ON time is derived. The numerical results show that whenever the signal light flux or the background light flux is higher, the BER performance of the time-gated mode is apparently better than the free-running mode. For example, when signal photons and background photons are 30 and 10 per symbol time, respectively, the BER of free-running SPAD converges to 0.1, while the BER of the time-gated scheme is about 10−6.